ITEM NO. This Part 1 will be determined by Committee Services REPORT OF THE STRATEGIC DIRECTOR OF HOUSING & PLANNING To the Lead Member for Housing Services On: 12th January 2006 TITLE: New Energy Efficiency Schemes for Broughton Park and Barton RECOMMENDATIONS: Lead member is recommended to:1. To note and approve to progress the ‘Switch onto Savings’ scheme for Broughton Park 2. To note and approve to progress the Affordable Warmth For All (HeatStreets) Scheme for the fuel poverty areas in Barton Ward. EXECUTIVE SUMMARY: This report outlines details of two schemes which will fulfil needs in the council’s provision of energy efficiency insulation schemes in Salford. Firstly, the Council has no energy efficiency scheme for Broughton Park. The recent Building Research Establishment’s (BRE) Housing Projections survey for the City council found that this neighbourhood had significant levels of fuel poverty. With our private sector partners Energy Advice Grant Administration Partnership Ltd (EAGA), we have developed a proposal to provide discounted insulation measures for Broughton Park, known as ‘Switched on to Savings’. Secondly, there is no current scheme which focuses resources directly on estates in wards, which have been found to contain high levels of fuel poverty in the west of Salford, such as the ward of Barton. The BRE ranked Barton as being the third in the table of wards most affected by fuel poverty. To remedy this the council has developed the Affordable Warmth For All (HeatStreets) Scheme. Estates suffering from high levels of fuel poverty on the Barton/Winton and Barton/Eccles wards borders will also be included in this scheme. The Council has successfully bid for an SRB5 grant of £50K to provide free insulation or discounted insulation for dwellings in high fuel poverty areas in the private sector. 1 Our utility partner on this scheme is Powergen Plc. If funds permit, vulnerable private households will be offered the opportunity to purchase discounted insulation measures in Swinton South, Walkden North, Walden South and Little Hulton. In addition, our partners Powergen will promote their own discounted cavity wall and loft insulation scheme to private sector households living in West Salford. The Council will help Powergen promote this scheme but will make no financial contribution. The Switched on to Savings scheme and the Affordable Warmth For All (HeatStreets) schemes will make available free or discounted insulation measures available to vulnerable households in the identified areas this Winter. This will improve the energy efficiency of participating homes and reduce households’ heating bills. BACKGROUND DOCUMENTS: Salford HECA Strategy (1996) Affordable Warmth Strategy for Salford (2005) ASSESSMENT OF RISK: Low. The council is making no financial contribution to the Broughton Park scheme. The Affordable Warmth for All (HeatStreets) scheme is being funded by a SRB5 grant of £50K and no other financial contribution will be made by the council. THE SOURCE OF FUNDING: Switch onto Savings, Broughton Park Scheme: An Energy Efficiency Commitment (EEC) grant from Scottish & Southern Energy Plc. Warm Front grants from Energy Advice Grant Administration Partnership Ltd Affordable Warmth For All (HeatStreets) Scheme: £50K SRB5 grant Energy Efficiency Commitment (EEC) grant from our energy company partner Powergen Plc. Warm Front grants from Energy Advice Grant Administration Partnership Ltd FINANCIAL ADVICE OBTAINED: Switch onto Savings, Broughton Park Scheme: The Council is not making any financial contribution to this scheme. Affordable Warmth For All (HeatStreets) Scheme: Nigel Dickens consulted and states that his section at no issues with this scheme. 2 LEGAL IMPLICATION: Affordable Warmth Referral Network Project With reference to this morning’s discussion concerning my area of work at this morning’s Community Housing Managers Meeting and the Affordable Warmth Referral Network (AWRN). The primary aim of the AWRN is- to make homes energy efficient and maximise income. The project’s secondary aims are - to improve housing standards, contribute to private sector renewal and ensure social support. To help the AWRN reach it’s full potential we are looking for support for the initiative. I have attached a copy of likely costs to support our bid for funding for this project for the next 4 years. Our partners on this scheme are currently: 1. Local Strategic Partnership 2. Pension Services 3. Welfare Benefits & Debt Advice Service 4. Salford’s Housing Improvement Service 5. GMS-EEAC 6. ScottishPower 7. InsulationUK & 8. The PCT who have indicated that they will join when the AWRN is in place. To take us up to the Affordable warmth Strategy’s target date for eradicating fuel poverty, of March 2011. This was the main project highlighted in the Affordable Warmth Strategy’s Action Plan. It will help us meet targets in relation to Decent Homes, Fuel Poverty and environmental CO2 targets. The SAP target for energy efficiency was included in the community plan. 3 COMMUNICATION IMPLICATIONS Internal communications – It is proposed to communicate this decision internally via the Intranet, Team Briefings and ‘Housing Plan Brief’. Information will also be placed on the Affordable Warmth website at www.partnersinsalford.org/keepingwarm External communications – this decision will be marketed/ promoted through our BME and minority faith organisations partner such as Salford Link. Press Release – It is intended to release information to the press on this decision. Distribution will include The Salford Advertiser, Manchester Evening News, Jewish Chronicle’s Manchester Pages or the local free newspaper and other relevant BME and minority faith newsletters. Other outlets will include Inside Housing, Housing Today and HECA Fora Network News. Advertising – To promote Switch onto Savings, Broughton Park Scheme an advert will be placed in the Jewish Advertiser by our partner’s EAGA partnership. Magazines circulation 4,500 households. PROPERTY: Not applicable as no property will be acquired or used during the lifespan of the two projects. HUMAN RESOURCES: No additional staffing resources required for these two projects. CONTACT OFFICER: Les Laws (Principal Officer) Strategy and Consultation Team Housing and Planning Services Tele: 922 8798 leslie.laws@salford.gov.uk WARD(S) TO WHICH REPORT RELATES: Switch onto Savings, Broughton Park Scheme: Kersal Affordable Warmth For All (HeetStreets) Scheme: Prime Areas: Barton, Eccles and Winton. If take up is low the scheme will be extended to areas of fuel poverty in Swinton South, Walkden North, Walkden South and Little Hulton for ‘able to pay’ element of scheme. 4 KEY COUNCIL POLICIES: Home Energy Conservation (1996) Affordable Warmth Strategy for Salford (2005) Private Sector Housing Strategy City of Salford Housing Strategy (2002 – 2005) LINKS TO PARTNERS IN SALFORD THEMES: A healthy city An inclusive city with stronger communities A city that’s good to live in LINKS TO CABINET PRIORITIES AND PLEDGES Improving health in Salford Promoting inclusion in Salford Enhancing life in Salford ASSESSMENT OF RISK: Affordable Warmth For All (HeetStreets) Scheme: Mitigating our liability has been discussed with the legal section and their advice taken. Switch onto Savings, Broughton Park Scheme: Our risk is low for this scheme as we are only supporting the promotion of this scheme. LINKS TO HOUSING AND AFFORDABLE WARMTH STRATEGY PRIORITIES: Housing Strategy Bring all homes to a decent standard Make sure we have the means to deliver our strategy Affordable Warmth Strategy Aim 3: To provide financial solutions for affordable warmth Aim 4: To improve the energy efficiency of the housing stock in Salford LINKS TO PERFORMANCE: To make Salford’s domestic sector 21% more energy-efficient by April 2006 using a baseline of 1996. 5 EQUALITY IMPACT ASSESSMENT: An Equality Impact Assessment of the Affordable Warmth Strategy has been completed on 8 March 2005. DETAILS: 1. Background 1.1 To fill gaps in the provision of energy efficiency schemes in the city two new schemes have been developed with our private sector partners. Recent analysis of the levels of fuel poverty, by the Building Research Establishment, in salford revealed that Broughton Park and Barton ward are areas of significant levels of fuel poverty. 1.2 The BRE’s analysis revealed that Broughton Park contains areas of dwellings were fuel poverty is as high as 25%. Barton ward was ranked third worst in the table of wards suffering from fuel poverty. In Barton the BRE found that 10.13% of households were living in fuel poverty. 1.3 Both these schemes are an outcome of the implementation of the Affordable Warmth Strategy’s Action Plan 2. Switch onto Savings in Broughton Park 2.1 There are no council energy efficiency schemes for the area known as Broughton Park as it is outside the Housing Market Renewal Area and therefore not covered by the Council’s ‘Keeping Warm In Central Salford’ scheme. 2.2 With our partners Energy Advice Grant Administration (EAGA) Partnership Ltd and Scottish & Southern Energy Plc, it is proposed to make available a scheme, which discounts the cost of cavity wall and loft insulation to private sector residents. EAGA also administer the Government’s Warm Front grants, whereby eligible households will be encouraged to apply to have insulation and heating measures installed. 2.3 EAGA and their approved contractors will use a ‘zoned approach’ to install discounted insulation measures through this scheme. Where eligible the owner will receive 100% funded insulation and heating measures through the Warm Front scheme. 6 2.4 This scheme will be promoted by a mail-out by EAGA Partnership Ltd. Prior to the launch, the Council and its partners will consult with local minority faith groups. The possibility of obtaining favourable publicity for this scheme via the Jewish Advertiser and the Jewish Chronicle’s Manchester Pages, is also being looked into. 2.5 The objectives of the Switch onto Savings in Broughton Park are: To raise the profile of energy efficiency amongst Broughton Park residents through marketing and publicity To offer cavity wall and loft insulation at a discount price. To increase the number of people in the City who invest in physical energy efficiency measures To reduce CO2 emissions and to promote the sustainability of energy To complement the City’s overall HECA Strategy. To maximise the take up of Warm Front grants and installation of central heating measures 3.0 Affordable Warmth For All (HeatStreets) Scheme 3.1 Barton was identified by the recent Salford City Council, Housing Projections report by the BRE survey to have high levels of fuel poverty. The Barton ward is ranked 3rd in the league of wards most affected by fuel poverty. To tackle this problem, a focused approach will be used. To achieve this goal, Powergen Plc have been selected to be our utility company partner with their ‘HeatStreets’ initiative. Powergen’s partners on this scheme are Energy Saving Partnership (ESP) who are the managing agent and Energy Services. This initiative is over four years old and has been successfully adopted by other local authorities such as Knowsley MBC, Wirral MBC, Sunderland City Council and Derwent Valley. 3.2 The HeatStreets model involves Energy Efficiency Surveys being undertaken by a specialist company, Energy Services, who go door-to-door in an identified area carrying out survey and assessment work, and then drawing up a package of energy saving measures for participating households. These measures consist of cavity wall insulation and loft insulation. The surveyors are fully qualified, having the City and Guilds 6176 in Energy Awareness as a minimum requirement. 3.3 Depending on the households circumstances, free or heavily subsidised insulation measures will be made available to private households. The type of measures installed will impact on the level of Energy Efficiency Commitment (EEC) grant received from the energy company. Dwellings receiving both cavity wall and loft insulation works attract a greater EEC grant from our partner Powergen. 7 3.4 This scheme also includes a ‘Benefit Check-up’ element and Powergen has a welfare benefits team that can offer advice to households on their entitlement to benefits and is available through a freephone line. The surveys and associated publicity and marketing of this scheme will promote the free telephone number. 3.5 HeatStreet Area The objective is to focus Salford City Council’s funding primarily at the Barton Ward of Salford with some further areas considered to allow the HeatStreets programme the best chance to deliver a balanced programme of spend, targeted mainly at ‘vulnerable’ households. Prime Area – Barton Ward, identified as an area of significant fuel poverty. Prime Area – The border area of Barton and Winton and Barton and Eccles identified as an area where fuel poverty exists. Secondary area – Swinton South, identified as an area of fuel poverty. Secondary area – propose that Little Hulton and Walkden South be considered as an area for delivery of the discounted ‘able to pay’ element of the programme. These secondary areas will be finalised by agreement with relevant parties once an area survey has been conducted to assess the suitability of the housing stock/area. 3.6 Grant/Offer Categories This project will focus resources on vulnerable households by providing free or Discounted insulation to the following: Grant A (Free Offer) - to those households deemed to qualify for the Warm Front programme or the Energy Efficiency Commitment Priority Group. Grant B1 (Free Offer) – Free insulation – to those households on State Pension only with no additional income received by the main householder(s) Grant B2 (Free Offer) – to families with a child under 16 that have an income of between £15,050 and £20,000 *Grant B3 (Free Offer) – to an household which is owned by an Accredited Private Landlord and located within the Barton ward 8 Grant C (Subsidised Offer) – to any household not qualify under category A or B. (Salford C.C. through the SRB5 grant and the householder share equally the remaining balance after Powergen’s contribution) Grant D (Discounted Able to Pay Offer) – to households that fall outside of the Prime Areas, covering the remainder of West Salford. (The householder paying the balance after Powergen’s contribution) *Accredited Private landlords, living in an area identified by the BRE to be one of high fuel poverty in West Salford. To qualify the landlord must be a member of or agree to join Salford City Council’s Accredited Landlord scheme. (No grant for insulation works will be paid until they have been confirmed as being a member of the Accreditation Scheme). 3.7 Owner occupiers living in the identified areas of fuel poverty, not qualifying for the above, will be eligible for grant funded by the SRB5 proposed scheme, to subsidise loft insulation and cavity wall insulation by 50%. This subsidy will be in addition to the usual Energy Efficiency Commitment grant provided by the energy company to subsidise the cost of insulation measures. 3.8 The objectives of the Affordable Warmth For All (HeatStreets) scheme are: To raise the profile of energy efficiency amongst Barton residents through marketing and publicity To offer cavity wall and loft insulation at a discount price. To increase the number of people in the City who invest in physical energy efficiency measures To reduce CO2 emissions and to promote the sustainability of energy To complement City’s overall HECA Strategy. To maximise the take up of Warm Front grants and installation of central heating measures The target for the number of homes improved under the scheme is 492. 3.9 Powergen will also make available a discounted energy efficiency scheme to property owners living in West Salford. The Council will support this initiative but will not make a financial contribution towards it. 9 4. Conclusion 4.1 The above projects will play their part in achieving the Affordable Warmth Strategy’s target of ending fuel poverty in Salford by 2010 for vulnerable households. The projects will add value by enhance the quality and environmental sustainability of housing in the above-mentioned wards. 4.2 Implementation of these proposals will contribute to improving the energy efficiency of the participating owner-occupiers and Accredited Private Landlords. 4.3 In addition will contribute reducing the high levels of mortality experienced by older homeowners living in energy inefficient homes. 4.4 Implementation of these proposals will fill gaps in existing energy efficiency schemes. 4.5 Implementation of these proposals will contribute to the achievement of the Council’s strategic objectives in the above mentioned wards. 10